Share-based 'stakeholder' accounts have performed well over the past 12 months

Just 66.5% of parents who had received their vouchers by the middle of May have used them to open one of the accounts, according to figures from HM Revenue and Customs.

The scheme, which hands a voucher worth �250 to parents of children born since September 2002, is now issuing 70,000 vouchers a month.

In total, 2.4 million children have become eligible for Child Trust Fund accounts since the government declared the system open for business in April 2005.

Parents have 12 months in which to open an account before the government steps in and invests the money on their behalf.

So, although the money is not lost, parents and children forgo up to a year's interest as well as suffering a loss of control over their investment.

The government hopes parents will get into the savings habit and regularly top-up their children's accounts to build a sizable lump-sum for when the child reaches 18.

Research suggests about half of parents are currently planning to take up the opportunity to add to their offspring's funds.

Watch Simon's report in full.

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VIDEO: Child Trust Fund Uptake